BILL ANALYSIS                                                                                                                                                                                                    



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          SENATE THIRD READING
          SB 666 (Bowen)
          As Amended September 9, 2003
          Majority vote 

           SENATE VOTE  :Not relevant  
           
           UTILITIES AND COMMERCE          APPROPRIATIONS                  
                     (vote not relevant)                     (vote not  
               relevant)
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          |     |                          |     |                          |
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           NATURAL RESOURCES   9-0                                         
           
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          |Ayes:|Jackson, La Malfa,        |     |                          |
          |     |Hancock, Harman, Koretz,  |     |                          |
          |     |Laird, Lieber, Lowenthal, |     |                          |
          |     |Wolk                      |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  Provides statutory authority to transfer 62 acres for  
          wetland preservation in the Ballona Wetlands fronting on Santa  
          Monica Bay, north of the Los Angeles International Airport. This  
          transaction is coordinated with the pending acquisition and  
          conveyance of an additional 483 acres, which the State will  
          obtain partly by purchase and partly by donation.  The various,  
          related land transactions result in the State obtaining title to  
          a total of 545 acres.  Specifically,  this bill  :

          1)Declares that the failure to construct a previously approved  
            bridge across the Ballona Creek Channel and a road to connect  
            Culver Boulevard and Jefferson Boulevard and provide access to  
            the portion of Playa Vista (south of Jefferson Boulevard and  
            east of Lincoln Boulevard) that is already partially developed  
            is not a violation of the Subdivision Map Act (Government Code  
            66410 et seq.) or the California Environmental Quality Act  
            (Public Resources Code 21000 et seq.) if the following  
            conditions are met:

             a)   The project owner or developer, Playa Capital Company,  
               relinquishes to the State of California the easement over  
               lands held in trust for the State on which the road would  
               have been constructed; and








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             b)   The easement is relinquished as part of a multi-parcel  
               transaction with the Wildlife Conservation Board (WCB) that  
               results in the acquisition of a total of at least 400 acres  
               in the coastal zone in Los Angeles County.

          2)Declares that any ordinance of the City of Los Angeles is  
            inapplicable to the extent it requires construction of the  
            road and bridge or it otherwise requires a new permit or  
            subdivision map approval.

          3)Requires the State Controller (Controller) to direct the  
            trustee to transfer the state's trust interest in the parcel  
            where the road would have been built to WCB for conservation,  
            restoration, or recreation purposes only, if WCB acquires a  
            total of at least 400 acres in the coastal zone from Playa  
            Capital Company, LLC.  This parcel was part of the former  
            Howard Hughes estate and was transferred to the state in trust  
            as part of the settlement of the Hughes estate's inheritance  
            tax liability.

          4)Declares that the Controller's transfer of the trust interest  
            pursuant to this bill supersedes any requirement imposed on  
            the Controller by the Probate Code or the Revenue and Taxation  
            Code with respect to the disposition or use of the net  
            proceeds of the trust estate.

          5)Declares that this bill does not violate Section 16 of Article  
            IV of the California Constitution, which invalidates any  
            special statute if a general statute can be made applicable,  
            and makes findings of special circumstances supporting this  
            declaration.

          6)Makes this bill contingent on the enactment, by January 1,  
            2004, of AB 859 (Nakano and Wesson), which reappropriates $25  
            million from a previous appropriation from the Safe  
            Neighborhood Parks, Clean Water, Clean Air, and Coastal  
            Protection Bond Act of 2000, for the acquisition, protection,  
            and restoration of the Ballona Wetlands.

           FISCAL EFFECT :  Unknown

           COMMENTS  :  According to the author's office, the Ballona  
          Wetlands is the largest intact coastal wetland ecosystem and one  
          of the last wetlands remaining in Los Angeles County.  About 98%  








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          of the historical wetland areas of Los Angeles County have been  
          filled and developed.  The Ballona Wetlands encompass a variety  
          of diverse habitats (i.e., estuary, salt marsh, dune, etc.), and  
          is important to both resident and migratory bird species.   
          Acquisition will create opportunities for natural resource  
          interpretation for school groups and scenic open space for  
          compatible recreation by visitors and residents of the  
          surrounding metropolitan area.

          The parcels referred to in this analysis are delineated on the  
          accompanying map.  The Trust for Public Land (TPL) currently  
          holds an option from Playa Capital Company, the owner and  
          developer of Playa Vista, for the acquisition of the  
          approximately 138 acres comprising Area A and the approximately  
          54 acres comprising Area B.  The option price for Areas A and B  
          is $139,000,000.  The option is currently scheduled to expire on  
          September 17, 2003.

          Upon TPL's subordinating the options to WCB, WCB will purchase  
          Areas A and B and from Playa Capital.  WCB will expend $140  
          million (the option price plus state administrative costs) for  
          this acquisition from the $300 million that is continuously  
          appropriated to WCB by the Water Security, Clean Drinking Water,  
          Coastal and Beach Protection Act of 2002 (which was enacted by  
          the voters as Proposition 50 at the November 2002 general  
          election) for the acquisition, protection, and restoration of  
          coastal wetlands and other coastal resources in Los Angeles and  
          Ventura Counties. (Water Code 79572) 

          AB 859 (Nakano and Wesson), which is pending in the current  
          Session, reappropriates $25 million that was previously  
          allocated to the State Coastal Conservancy (Conservancy) by the  
          Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal  
          Protection Act of 2000 (the Villaraigosa-Keeley Act) (which was  
          enacted by the voters as Proposition 12 at the March 2000  
          primary election) for the acquisition, protection, and  
          restoration of coastal wetlands in Los Angeles County. (Public  
          Resources Code 5096.352(f))  Upon completion of the  
          acquisitions, the Conservancy, using these funds, will take the  
          lead in planning restoration of the wetlands and doing some or  
          all of the restoration work.  This bill is contingent on the  
          enactment of AB 859 by January 1, 2004.

          The approximate 62 acres comprising Area C is the property that  
          was formerly part of the Howard Hughes estate and is currently  








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          held in trust by the state Controller in partial settlement of  
          estate taxes owed by the Hughes estate.  This bill requires the  
          Controller to direct the trustee to convey title to Area C to  
          the WCB concurrently with the acquisition of Areas A and B.

          As a further part of this transaction, Playa Capital has already  
          agreed to donate the remaining 208 acres labeled "Ballona  
          Wetlands Parcel" and the 83 acres labeled "Ballona Channel Creek  
          to the WCB.  (This bill does not affect the areas labeled  
          "Freshwater Marsh" and "Expanded Wetlands Parcel".)

          These acquisitions are summarized as follows:

            
                  ----------------------------------------------------- 
                 |                                        |Approx.     |
                 |                                        |acres       |
                 |----------------------------------------+------------|
                 |Area A-TPL option                       |138         |
                 |----------------------------------------+------------|
                 |Area B-TPL option                       |54          |
                 |----------------------------------------+------------|
                 |Ballona Wetlands Parcel-Playa Capital   |208         |
                 |donation                                |            |
                 |----------------------------------------+------------|
                 |Ballona Channel Creek-Playa Capital     |83          |
                 |donation                                |            |
                 |----------------------------------------+------------|
                 |Area C-state trust lands                |62          |
                 |----------------------------------------+------------|
                 |TOTAL                                   |545         |
                 |                                        |            |
                  ----------------------------------------------------- 
                  

           Analysis Prepared by  :  Jeff Arthur / NAT. RES. / (916) 319-2092 


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